Bangladesh Bank Headquarters
The central bank of Bangladesh has decided to provide repo facility to banks and non-banking financial institutions (NBFIs) only two days in a week instead of each working day.
The Bangladesh Bank (BB)’s latest move came into effect from this week in line with recommendations of International Monetary Fund (IMF). This is one of the conditions the IMF set for Bangladesh to approved $4.7 billion in loans.
Under the decision, banks and NBFIs will be allowed to get repo facility from the central bank on Monday and Wednesday instead of five working days in a week, according to a notification, issued on Sunday.
The BB earlier planned to provide banks and NBFIs with repo facility once a week for strengthening their liquidity system.
However, assured liquidity support facility (ALSF) and standing lending facility (SLF) as well as Islamic bank liquidity facility (IBLF) for banks and NBFIs will remain unchanged.